Fight Employee Theft With Expectations

Customer shoplifting rates are up. So are opportunities for theft by employees, and that might be a greater concern for you. A 2004 study concluded that 48% of total retail shrinkage is due to employee theft and 32% to shoplifting. Another compelling statistic: According to test publisher London House, 42% of retail employees admit to employee theft.
     There are similarities in the reasons and the remedies for shoplifting and employee theft. Some reasons are based in the Great Recession: People are strapped for money. They are willing to take more risks because they are unsure of their future. Store staffing is thinner, so there are fewer people watching out for the thieves. And remedies such as increasing physical security will help curb both shoplifting and employee theft.
     Certain personality characteristics are associated with employee theft, so pre-employment integrity testing using professionally validated instruments can help prune out potential thieves. Still, many retailers don't use integrity testing because of the costs of the psychological expertise and the concerns about lawsuits which might be filed by people labeled as dishonest.
     Whether or not you use integrity testing, having clear employee expectations goes a long way towards heading off situations that increase thievery rates among people who lack a firm sense of right and wrong. What is okay, and what is cause for discipline? Borrow tools from the store to work on projects at home and then return the tools? Take home samples left by vendors or merchandise the store management has discarded? Use computers in the back office for personal correspondence? Request permission to take ownership of returned items that won't be resold or returned to the supplier?
     It is in the psychology of retailing for certain employees to consider theft as terrible, but see their own taking of property as fine.